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The Foreign Trade Factory That Sells To The Domestic Market Eats The First Piece Of Sugar Through The Net Red Belt.

2020/4/22 12:03:00 4

Foreign Trade FactoryNet Red Belt GoodsBrand DevelopmentC2M Mode

"After this crisis, we can learn from it that no matter how hard the domestic road will be in the future, we can no longer expect a single foreign trade market."

Affected by the epidemic, Teng Feng, director of Guangzhou's love bird skin, said that the development of foreign trade factories should stick to "walking on two legs". Otherwise, when overseas markets encounter big storms, it is difficult for enterprises to "turn the helm" in a short time.

Recently, major domestic e-commerce platforms have introduced policies to support foreign trade factories in domestic sales. 1688, the establishment of digital "foreign trade zone" and the Taobao special edition are targeted at the "0 threshold" for foreign trade factories; Jingxi has launched a special "export to domestic sales support policy", on-line "factory price to buy foreign trade goods" venue activities, a lot of cooperation with the Ningbo municipal people's government signed a strategic cooperation agreement, it is expected that by May 31st, Ningbo will have more than 1500 key foreign trade enterprises through a lot of competition. Opening up domestic demand market.

For a long time, factories are facing "what to produce?" "How much is it?" "Who will deliver the goods?" Three major problems. In the view of many foreign trade factory owners, at present, the "export to domestic sale" policy provided by the domestic e-commerce platform can enable the factory to transform the online operation in the form of "light settlement". With the help of the digital marketing solution of the platform's strong flow, it can solve the problem of stock spot inventory to a certain extent and alleviate the pressure of cash flow.

At the same time, under the uncertainty of foreign epidemic situation, how to seek long-term development in the domestic market is also an important proposition for factory owners to ponder. "Small step, fast run and certainty" is the long-term plan for them to transform the domestic market.

"2020 is not going to be good all year round."

At the beginning of the year, affected by the domestic epidemic, the start time of love birds originally scheduled for February 1st was dragged on until February 24th. Factory postponed rework directly affects the order delivery time of foreign customers, thus making the factory capital chain face challenges.

Just as factories are fully equipped to work overtime, the epidemic is spreading rapidly.

Because the overseas selling market of love birds is mainly in western countries such as Italy, France, Germany and Spain, the spread of the epidemic directly affects the consumption of non essential necessities such as luggage and leather goods. Teng Feng also received the "bad news" that customers stopped orders or even cancelled orders in large quantities. "Second weeks to third weeks in March, 90% of foreign orders were cancelled." He said.

The operation of large overseas customers undoubtedly poured cold water on factories that rushed to work overtime. To make matters worse, orders that have entered the production line "want to stop are not stopped", do not deliver goods can not get the money, can not get the money, a series of fixed costs of the factory are not.

Also received from European and American customers to cancel the order notice, and foreign trade orders accounted for nearly 70%, annual sales volume of 100 billion of the world's largest brand of factory. Because Pu Lai Ya mainly produces knitted sweaters, sweaters and other products, so even if the transformation of the domestic market, at least until the autumn and winter peak season can receive large orders. Based on reality, he decided to suspend most of the production lines in mid April, leaving only the R & D team and individual production lines in autumn and winter.

Yang Hui, a customer manager of the company, told the media that most factories in Dongguan where the factory was located could hold on until April, and wait until the end of May.

"Affected by international epidemics, far more than foreign trade factories for finished products, for example, sweaters, manufacturers of finished products need upstream suppliers of raw materials, including yarn, dyestuffs, cotton, wool and other industrial chains." Yang Hui added.

And the challenges faced by foreign trade factories are more than the impact of the epidemic. Even with the improvement of international epidemic situation, with the increase of labor costs, many foreign orders have been transferred directly to Southeast Asian countries, and even domestic factories have directly opened factories to Southeast Asia.

"We expect that the whole year 2020 will not be very good." Teng Feng pointed out that the Sino US trade frictions a few years ago had not caused much impact on the love birds that ploughed the European market, but today's global epidemic makes every foreign trader facing the overseas market experience a "darkest moment".

As an old "foreign trader" with 15 years of experience, Teng Feng is relatively pessimistic about this year's foreign trade situation. This is also based on his insight into the consumption concept of foreign people: "the consumption concept and the domestic difference of foreign people are still great. Once they get the lowest or no income, they really have no money, and there are still many savings like us Chinese. Accustomed to. Therefore, the purchasing power of such consumer goods such as luggage and leather goods will also drop significantly in foreign markets.

Clear inventory has become the main demand for foreign trade to sell domestically.

The epidemic is coming suddenly, and the foreign trade factory is looking for all channels for shipment.

With the mitigation of domestic epidemic and the revival of consumer market, foreign trade to domestic sales has become one of the paths for many factories to find a way out. Through the introduction of the local government, the love bird officially entered the 1688 factory in March this year.

For those who have long been engaged in foreign trade business and are accustomed to dealing with foreign distributors, they suddenly turn to the domestic market and ship out in retail or retail outlets. "We really do not understand the domestic market and sales." Teng Feng said frankly.

Despite the difficulties, inventory in the warehouse still reminds factory owners to ship the money back as soon as possible.

"Like the bags and belts that we run, we have a very strong seasonal character. We miss a specific period of time, and goods can only be sold at reduced prices or changed into stocks." Teng Feng said, at present, the love birds are actively communicating with foreign customers, giving priority to the overseas orders that have been shipped, and then selling them in the domestic market.

Parity is the main business strategy of foreign trade factories. Bosses do not expect to be profitable at this stage, as long as they can clear the inventory and return the funds. "We have several belts in the European market, the retail price is 29.9 euros, probably equivalent to 200 yuan, at present, we only sell 30 yuan on the 1688 platform." Teng Feng said.

In addition to parity strategy, live broadcasting is also a marketing game they are willing to try. Direct seeding electricity providers are in the limelight in China. Foreign trade people are also concerned about this trend. They also try to introduce products through 1688 live broadcast, and interact with wholesale buyers online. Judging from the current results, although few transactions are recorded in the live broadcast, many businesses will buy samples for trial.

In addition, the anxiety of the foreign trade is that the total volume of domestic market demand is limited, and so many foreign trade factories are coming in all at once. For the domestic market, it is also very difficult to digest in a short time. What's more, the vast majority of foreign trade factories are facing overseas markets, which are not necessarily suitable for Chinese tastes. "The aesthetic and preferences of the domestic market and the European market are quite different. Some of our inventory patterns are not very suitable for Chinese people's taste or taste." Teng Feng said.

"Small step, run quickly, grasp certainty".

For foreign trade factories that are accustomed to the "order type" production mode, "production on demand, no pressure on goods" is their most willing input.

To transform the domestic market and continue to cooperate with domestic brands to do foundry has become one of the ways for foreign trade people to seek certainty. Although the quantity of domestic brands is limited compared with the large orders of foreign brands, at the present stage, even if the factory production lines are running, even small orders factories are willing to invest.

In addition to seeking cooperation in the field of brand processing in China, the foreign trade factory is still taking the initiative to understand the domestic market demand and adjusting the development and production of new products according to the aesthetic and preferences of the Chinese people. However, the lack of in-depth understanding of the domestic market is a huge challenge for most foreign trade people to transform their domestic market.

"Foreign trade factories are accustomed to demand and output from customers. After the transformation of the domestic trading platform, the B2B trading platform needs the factory's own ability to develop and provide spot goods, so that buyers can choose the money. On the other hand, the factory also needs a professional operation team to manage the electricity supplier. If the team lacks experience, it will be difficult to do so. Yang Hui, customer manager, said.

In fact, many domestic factories engaged in foreign trade businesses are "nameless champions" in the field of market segmentation, but because they devote their energies to overseas markets, they are less well-known in the country and seldom known by consumers. "We have been engaged in the foreign trade processing business for a long time. In fact, the understanding and sensitivity of new things are far behind the whole market." Teng Feng, director of love bird leather, said.

Fortunately, the design department was set up in 2017 in Barcelona, Spain. During this period, the design team was developing products that are more suitable for the Chinese market. The first samples have been tested and will soon be put into mass production.

To solve the problem of new product development, the factory needs more traffic to expand its brand awareness. Besides the factory shops of the mainstream e-commerce platform in China, the net red anchor is also the source of traffic that the factory owner is optimistic about.

"At present, the problem that we turn to domestic development is that there is no brand name, and the two is unable to reach a wide range of consumer groups." Teng Feng said frankly. Therefore, he began to try the red anchor of cooperation network, and expanded the brand influence through the appeal of net red.

"Now is the net red economy, these can take the goods the daring person is really very fierce. We are also actively looking for these anchors to communicate with customized anchors based on the characteristics of the fans in these anchors. He said. The background of foreign trade factory, independent research and design capability, and below market price are the product advantages that Teng Feng wants to convey to the domestic consumer market.

A few years ago, he began to cooperate with Taobao, who also liked this cooperation mode. To a certain extent, the red anchor of cooperative network not only has many shipments, but also has large profit margins.

Yang Hui told the media that compared with the factory operation shop, the cooperation with net red is relatively definite in the order quantity. For example, some net red live agencies directly look at a certain style, and the first order will make 1000-3000 orders to the factory, which can be shipped directly. Some live webcast will take the sample clothes first, how many pieces of products are sold in the live room, or how many pieces of goods are ordered, or the sales volume of the live rooms will be issued by factories.

"Aiming at some high-end high-end net red shops or Tmall stores, customers will also ask for adjustments to styles, colors and accessories, or directly find a popular foreign currency, which will be transformed and processed by the representative factory, and try not to" crash shirts "with other stores. Yang Hui said.

Compared with the development of brand, C2M mode is more optimistic.

At the same time, the domestic e-commerce platform supports foreign trade factories to "sell domestically and clean up stocks". At the same time, C2M's policy of "on demand and fixed production" and the brand transformation of foreign trade factories have also become the path choice for foreign trade factories to seek long-term development in China. And compared to building a factory's own brand, the boss of foreign trade factory seems more willing to accept C2M's production mode at this stage.

"There are too many brands in the domestic market now, and it will take us at least 3-5 years for our emerging brands to create fame. Moreover, most of the consumers in China are very loyal to the brand, and most of the popular brands are hard to maintain their brand loyalty unless the brand has always had its own unique positioning, and the product design style can be passed down. Teng Feng said.

Many foreign trade factory owners have similar ideas: location source factories do not expect consumers to have high brand loyalty, but rather hope that they will not be disappointed after buying products, and recognize the price performance ratio of products. If the factory can do this, or it can meet the consumer's approval, it has already been satisfied.

Since 1997, he began to do business in foreign trade. In 2011-2013 years, he tried to make his own brand in the country. Because he failed to achieve his ideal goal, his own brand strategy was temporarily stranded. At present, though there is a plan to run Tmall stores, but how to grasp the ever-changing market demand, and continue to create brand image and influence through new products, we still need to explore and operate for a long time.

Yang Hui, a customer manager of the company, said that compared to its own brand, the C2M mode is more suitable for foreign trade factories that have just started to sell domestically. In view of the current C2M production and marketing programs launched by the major platforms, it is more concerned that the price range of the platform and the price of the goods it can make can match, and the volume of shipments can be large.

Teng Feng also optimistic about the development path of C2M. He admitted: "at present, a large number of foreign trade factories are facing the pressure of domestic marketing transformation. Many factory directors do not expect the production of commodities to make much money, so long as they can sell at a fair price, it will be very good to ease the pressure on the capital chain."

Founded in 1989, Guangdong Jinhui knife scissors are mainly OEM for European and American brands Zwilling and WMF. This year's 1688 sets of 6 sets of cutters have achieved good sales results, and this main product has benefited from the platform's grasp of the mainstream consumer trends in the domestic market for cutting tools, and then feedback the market demand points to the customized production of the factory end.

Although C2M can help factory to a certain extent to grasp the certainty of production, it is also faced with many challenges for foreign trade factories accustomed to "big bills".

"Before the large orders abroad, it is possible to put 50 thousand bags into production at once. For factories, it is easy to arrange production lines. Now the factory sells to the domestic market as a brand. It may produce 200-500 units at a time. At this time, it is necessary to switch the production line, which involves the adjustment of the production line process, and it will take some time. " Teng Feng said.

Jinhui, who is also worried about the knife and scissors, is also worried about Zhong Jialiang. Knives and scissors factories have to transform the C2M mode and face the challenge of traditional manufacturing processes. Zhong Jialiang told the media: "the production process of cutting tools has its particularity, especially the handle part, which needs to develop corresponding molds, and the development of molds is a time-consuming part. Therefore, the C2M operation mode will bring certain subversion to the entire product process, which involves how to develop the supporting mould quickly according to the rhythm of new product development.

"The most urgent thing is to straighten out the R & D and production links of the factory, and to transform the existing production lines according to the domestic sales mode, so as to cope with the problems of new product development, production and sale at any time. Probably in three months to half a year, we should have basically known the effect of this model. Teng Feng, director of love bird leather, said.

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